 
|
Low-Volume Lift
BTC: Price: $10,450 | MCAP: $186.76 billion | 24-Hr Volume: $19.19 billion
Short-term trend: Neutral
Bitcoin's recovery from $9,320 to $10,500 has neutralized the immediate bearish outlook. The price rise is backed by an uptick in bitcoin's dominance rate – the top cryptocurrency's share of the total market cap – and looks sustainable.
Trading volumes, however, tell another story, and suggest the recovery seen in the last four days could be short-lived.
The green bars (buying volumes) seen in the last four days on the hourly chart below are smaller compared to the red bars (selling volumes) seen during bitcoin’s drop to one-month lows on Aug.29.
Also, Sunday's green bar (above right) is significantly smaller than those observed during previous breakouts above $10,000.
So, a fall back to levels below $10,000 cannot be ruled out. The outlook would turn bullish if prices invalidate the bearish lower highs setup seen on the daily chart with a high-volume move above $10,956 (Aug. 20 high). That would could yield a rally to $12,000.
Long-term trend: Neutral
Bitcoin's monthly chart shows a double inside bar pattern – August’s candle falls within July's high and low and July’s candle is engulfed by June's high and low.
Double inside bars indicate indecision and lack of volatility and are considered a sign of bullish exhaustion, if they occur after a notable price rally, which seems to be the case here.
Also, the selling volume witnessed in July was the highest since March 2018. So, the long-run outlook stands neutralized.
A break above the high of the first inside bar ($13,200) is needed to revive the bullish outlook and a move below the low of the first inside bar ($9,049) will confirm a bearish reversal.
Traders can also take a weekly (Sunday, UTC) close or consecutive high-volume daily closes above $12,000 as a sign of bullish continuation. After all, a weekly close above $12,000 has remained elusive the last week of June.
Read Analysis
|
|
|
|
|
|
BEAMing With Potential Prosperity
BEAM: Price: $1.31 | MCAP: $44.5million | 24-Hr Volume: $70.7 million
Short-term trend: Neutral
BEAM is one of today best performing crypto in the top 100 at CoinMarketCap after yesterday's strong daily finish placed it up 13.58 percent on the day.
However, a degree of caution is warranted when contemplating further upside gains due to the fact that the market structure is yet to break bullish, post double top breakdown seen August 23-26.
A close above $1.51 would provide clarity for the bulls looking to break to new local highs while cementing a larger rally for the mid-term.
Long-term trend: Neutral
The long-term trend remains in contention as the battle between buyers and sellers continues within a minimal price range between $1 and $1.31 that has raged over a month.
As mentioned above, a firm close beyond $1.51 would invigorate the bulls to try for another break, made possible with the amount of volume currently flowing for BEAM.
 |
|
|
|
|
| WAX On WAX Off
WAX: Price: $0.042 | MCAP: $39.8 million | 24-Hr Volume: $82,732
Short-term trend: Oversold
WAX's price action has stalled along a prior breakdown low with each daily candle closing above $0.042, however, that may soon break as a bearish descending triangle takes shape.
If it does indeed fall, keep eyes fixed on prior lows near $0.039 as a likely landing pad should sellers look to increase their pressure and break the pattern.
There is a chance for an oversold bounce, but that will likely be short-lived as selling pressure remains greater in the short-term.
Long-term trend: Bearish
Having failed to produce any new significant highs, the direction long-term remains bearish given that there has been such low levels of daily volume with today's standing at just 82,732 total.
Only a firm close above $0.06 would be enough to revitalise bullish long-term aspirations.
 |
Popular market analyst Holger Zschaepitz believes Argentina's decision to impose capital controls over the weekend put a bid under bitcoin, helping the top cryptocurrency rise back above $10,000.
Argentina is facing a financial crisis, courtesy of pro-market President Macri's stunning loss 15-point loss in the presidential primaries on Aug. 11.
On the following day, peso fell more than 30 percent and was down almost 36 percent on a year-to-date basis over the weekend. In the last week one week or so, Argentina's forex reserves have reportedly dropped by $3 billion.
To rein in the currency crisis, Argentina introduced capital controls over the weekend. Argentinian businesses now have to seek authorization to sell pesos for foreign currency. Individuals purchases will be limited to just $10,000 per month.
In such situations, investors and business houses look out for alternatives like bitcoin – an anti-establishment asset with a store of value appeal.
Volumes on local bitcoins for the Argentine peso rose by 21 percent in the week ended Aug. 31, according to coin.dance.
The increased demand from Argentina may have strengthened the safe haven narrative, inviting stronger buying pressures for the top cryptocurrency.
That said, the rally in BTC/USD may not be sustainable, as trading volumes in dollar pairs remained low over the weekend. |
|
| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
|
| | | | |
Bitcoin's Surging Dominance